Legislation providing patients with an exemption to the state’s marijuana excise tax has been signed into law by Governor Jay Inslee.
House Bill 1453 was signed into law by Governor Inslee following widespread support in the legislature; it passed the House of Representatives 82 to 14, and it passed the Senate 36 to 13. The measure will be officially enacted into law in June.
The measure “Provides a tax exemption from the 37 percent cannabis excise tax for qualifying patients and designated providers with a recognition card on purchases of cannabis products that are labeled as Department of Health (DOH)-compliant product and tested in accordance with the DOH’s rules.”
The law “Expires the tax exemption June 30, 2029, includes a tax preference performance statement, and directs the Joint Legislative Audit and Review Committee to review the tax preference with a report due in 2028.”
If lawmakers want to extend the exemption past June 30, 2029, they will need to pass a new law before that date.
Washington legalized marijuana in 2012, years after the state legalized medical marijuana. Although medical marijuana patients are exempt from the state’s sales tax, they are not exempt from the 37% excise tax established under the 2012 law.
22 other states have legalized marijuana since Washington and Colorado did it in 2012, but none have established a marijuana tax higher than Washington’s 37%.
